The income tax department is expecting to overshoot its target of Rs 2,10,000 crore for direct taxes in 2006-07, based on the robust advance tax collections till March 15.
An income tax official said, Many companies have paid more than 50% of their advance tax in this quarter, which will increase direct tax collections tremendously. Initial trends suggest, we will continue without growth rate of about 35%.
Sources said advance tax collection trends from Mumbai, Chennai and Delhi had been very buoyant so far. The increased advance tax collection figures reflect the economys robustness and the high corporate earnings.
Initial data suggests that State Bank of India is likely to be one of the top taxpayers with its advance tax deposit of Rs 690 crore as compared to Rs 470 crore it paid as the last installment in 2005-06.
Till December 2006, tax authorities had received Rs 59,393 crore as advance tax with Oil and Natural Gas Corporation as the top advance taxpayer, which had paid Rs 5,192 crore.
Advance tax from companies has been poring in with March 15, being the deadline for the final installment of the tax. Advance tax is paid in three installments over the year. The first and second installments together comprise 60% of the total tax to be paid. The last dates for payment of these installments are September 15 and December 15. The balance 40% is paid as part of the third installment till March 15.
Collection of value added tax too has remained buoyant. Minsiter of state for finance SS Palanimanickam informed Parliament on Friday that VAT revenues till December stand at Rs 96,562.76 crore.